Today, we published our new online retail forecast for Latin America, covering Brazil, Argentina, and Mexico (clients can read the report here). Driven by online retail revenues in Brazil, where the market is forecast to reach $35 billion by 2018, the region’s eCommerce markets will continue to surge. We see the following trends in Latin America:
eCommerce will continue its upward path despite slowed economic growth in the region. There has been significant coverage of the slowing economies in markets like Mexico and Brazil. However, as we saw in markets like the US and the UK during the recent global recession, eCommerce remains a bright spot even during challenging economic times. We expect to see online sales continue to increase at a rapid pace across Latin America, even though many countries are no longer seeing the high economic growth rates of recent years.
Instagram’s ‘Instagram Direct’ announcement this morning left me speechless, as I followed the live feed (thank you CNET) from the West Coast. First, let me disclose that I am middle-aged. I’m 45 years of age. What does this mean? I remember AIM in the late nineties. I remember the days when chat sessions evaporated. I remember my first cell phone in 1997 and texting my friends – mostly in Europe at that time. The idea of communicating with people I know first and foremost is not new to me. It is very comfortable – more so than Tweeting or posting.
Bottom line: This is a “catch-up” move for Instagram.
1) Mobile phones have always been about communicating with friends and people we know. The magic of mobile phones early on was that a person’s phone number was their ID. It made it so easy to send SMS or MMS messages.
2) Instagram has 150M downloads, and half of their users are active daily. That is awesome. However, its competitors globally – Kakao Talk, WeChat, etc. – have two to three times that number. Apps like WeChat already allow users to share videos, photos, messages, cartoons, voice clips, etc. to individuals, groups, groups created around an event, etc.
3) Messaging will help them earn more mobile media minutes. I spoke with Chris Hill at Mobidia last week, and he shared some of their data on usage minutes. In their sample from mid-October, Kakao Talk had more than 200 minutes of usage per week, WhatsApp was just shy of 200, while Kik Messenger, LINE, and WeChat fell just below 100 minutes of use per week. If they were to post ads as a means of monetization, minutes spent is key.
As we ramp up our coverage of the digital store, we recently researched the role of retail sales associates to understand their impact in the age of the customer. There’s no doubt that technology has dramatically impacted the way in which consumers discover, explore, buy, and engage with brands, products, and services. However, the impact of technology on sales associates is unclear, as is the degree to which the role of the sales associate needs to evolve to leverage these new capabilities.
In the new report A New Generation Of Clienteling, we tackle the role of sales associates and their use of technology in the digital store. In the report, we note a number of trends, including the following:
The role of the associate will change from an information provider to a facilitator of engagement. The sales associate is no longer the sole provider of information in stores: Customers can now find product information via their mobile device without the help of an associate. This scenario provides an opportunity for the sales associate to pivot and drive increased engagement with the customer.
Digitally connected sales associates are trusted. Less than a quarter of US online adult today state that sales associates are the best source for product information. However, when armed with mobile devices, the associate is seen as a trusted advisor. The breadth of information available to sales associates via mobile devices allows them to consider a broader array of information when making product recommendations to customers in the store.
Anyone who’s heard me speak at a conference over the last couple of years stands a fair chance of having listened to me talk about the fall of the Berlin Wall. Now, considering I typically talk about agile commerce, digital transformation, and occasionally mobile retail strategies, that might sound odd, but I talk about the fall of the Wall as an icon for revolution and for change.
And change is exactly what’s happening east of the old Iron Curtain now.
We just published our new online retail forecast report for Asia Pacific (clients can read the report here). In our forecast, we look at top-line growth in five markets across Asia Pacific: China, Japan, South Korea, India, and Australia. China will be responsible for the lion’s share of growth in these markets, which, combined, will reach some $854 billion by 2018.
In the report, we note a number of trends across the region, including the following:
The heavy dominance of web-only retailers in many countries. In many markets in Asia Pacific, traditional retailers do not play as strong a role in eCommerce as they do in the US, UK, or even Latin America. Internet Retailer’s Asia 500 list, for example, includes just one traditional retailer among the top 10 retail websites in the region (China’s Suning). And while some markets like Australia see traditional retailers now playing a bigger role in eCommerce, in fast-growing eCommerce markets like India as well as China, web-only retailers are very much dominant today.
The increased focus on omnichannel functionality. The strong role that many traditional retailers play in eCommerce in the US and Europe often translates into robust omnichannel initiatives. By contrast, it’s taken a while for many retailers across Asia Pacific to launch offerings that link their online and offline channels. Increasingly, however, digitally savvy retailers in the region are focused on developing new offerings. In Australia, for example, where traditional domestic retailers were long notably lagging (or absent) when it came to eCommerce, there is renewed interest not just in the online channel but also in building out key omnichannel features.
Many brands and corporations today suffer from “two site” syndrome. The ‘.com’ site (often owned by brand/corporate marketing) serves to offer up a glossy magazine experience — designed to romance the customer with brand and product stories, while the ‘store.’ is owned by the eBusiness team and is designed around structured product content to optimize conversion and revenue goals. The result is often fragmented and poorly integrated digital experiences that confuse the customer, introduce unnecessary complexity, and ultimately fail to deliver on the broader digital strategy of the brand.
In the age of the customer, brands today seek a unified experience between the four stages of the customer life cycle (discover, explore, buy, and engage). For eBusiness professionals, this means tighter collaboration with their corporate marketing and brand counterparts to find ways to embed commerce (the buy phase) into the heart of the .com experience rather than building segregated eCommerce sites. However, this is easier said than done. The problem is that many brand and manufacturing organizations leverage web content management (WCM) platforms to create, manage, and measure targeted, personalized, and interactive brand experiences. However, these WCM platforms lack the robust commerce capabilities that organizations need to manage large, complex product catalogs and develop sophisticated merchandising strategies to sell online.
Forrester’s "US Online Holiday Retail Forecast, 2013" launches today. In it, we predict that for the third consecutive year, online holiday sales (November and December) are expected to grow at a double-digit pace and pull in over $78 billion. This represents about one-third of the overall retail sales volume for the year. This optimism is largely due to ever-increasing numbers of consumers choosing the Web over physical stores and the rise in mobile commerce. Despite unknowns such as the effects of a truncated holiday season and lingering consumer uncertainty around the federal government shutdown, online retailers can expect that consumers will be out in droves. The most successful retailers this holiday season will cater to consumers who:
Expect free shipping in some form. Consumers have come to expect free shipping, especially during the holidays, and many will actually leave a site if it's not offered. It’s the second most common reason why US online buyers abandon purchases and go to another retailer, behind price.
Research via all channels to find the best deals. Forrester expects that, not unlike in holidays past, price and saving money will be key considerations this holiday season. As the Web channel has become synonymous with value, retailers should expect consumers to be avidly searching for deals through a variety of touchpoints, at home and in-store on mobile devices. Availability of web content across devices will be critical: Forrester estimates that cross-channel sales (transactions that are influenced by the Web in some way but are completed in stores) will account for $247 billion this holiday season.
This is a guest post from Lily Varon, a researcher serving eBusiness & Channel Strategy professionals
Globalizing your eCommerce business isn’t just an option anymore — in many cases, it’s an imperative. But accepting global online payments is VERY complicated. It includes the transmission of sensitive financial information, an array of diverse payment methods, a long list of players in the transaction stream and many regulatory considerations. Add to the equation the increasing importance of mobile and the seamless user experience the consumer is demanding, and it’s enough to make even the most seasoned eBusiness professional’s head spin. So what are we to do? eBusiness professionals are often looking to partner with payment service providers (PSPs) to help manage and streamline these complex payment processes. But the PSP vendor landscape is crowded and highly competitive, leaving eBusiness professionals unclear of which PSP will best serve their needs.
Together with payments analyst Denée Carrington and commerce technology analyst Peter Sheldon, we just published a report to help eBusiness professionals navigate the maze of solutions and vendors at hand to help them meet the global payments challenge. Here are a few key questions eBusiness professionals should consider before signing on with any PSP:
When I first looked at responsive web design (RWD) back in June 2012, only early adopters (mostly startups, agencies and media firms) had taken the plunge. Back then, developers and web designers alike were still getting to grips with the concepts required to build responsive sites. eBusiness leaders, although intrigued by the premise of a single site able to adapt across devices, were mostly playing a pragmatic wait-and-see game. Fast forward almost 18 months and much has changed. Although hype and confusion continue (not least due to a perplexing set of technology terms and marketing buzzwords), RWD has firmly cemented itself as a natural evolution of web, and it’s here to stay.
In our latest research on RWD, my colleague Mark Grannan and I spoke to over 20 digital agencies and end user clients that have adopted responsive design. We found that RWD sites are still far from ubiquitous; however, adoption is growing steadily. As web traffic on mobile phones and tablets is increasing to the point where firms must optimize for these touchpoints, RWD is taking center stage in many enterprise discussions.